Gav Yam managed to raise NIS 900 million issuing bonds

Gav Yam Real Estate Company has completed the institutional phase of issuing bonds.
According to the report, the company raised about NIS 550 million for Series H, with an 8-year maturity, at a price that reflects a fixed shekel interest rate at an annual rate of 2.23%; and about NIS 350 million for Series I, with a maturity of About 5 years, at a price that reflects interest at an annual rate of 1.03%, linked to the consumer price index. The bonds are rated by S&P degrees AA and by Midroog Aa2
During 2020, Gav-Yam and its subsidiary Matam issued a debt totaling more than NIS 1 billion (excluding the current issue). Last week, the subsidiary, Matam, issued bonds traded in the institutional continuum system, by expanding an existing series of bonds, rated Aa2 by a rating, to a maturity of 4.7 years, for a total consideration of NIS 250 million gross, and at an annual shekel interest rate. Effective constant at 1.98%. This issue had a demand of close to NIS 400 million.
In February 2020, Gav-Yam issued a new series of bonds, in exchange for a gross total of NIS 777 million, after demands exceeding NIS 1.4 billion. The debentures (Series I) were raised at a price that reflects a negative interest rate (0.01%), linked to the consumer price index.
Avi Jakubowicz, CEO of Gav-Yam: "The high demand in the three said issues and their success is an expression of the capital market's confidence in the company, in the quality of its assets and in its business strategy, which leads to growth, financial strength and stability over the years. The registered permit requests provide the company with the impetus to continue the intensive entrepreneurial activity. It is important to note that 100% of the company's assets are not encumbered, an advantage that significantly increases the company's financial flexibility. In addition, the company maintains a low leverage rate of about 50%, and at the same time is growing over the years. "The company sought to raise about NIS 400 million, but the issue received high demand of about NIS 1.15 billion and the company chose to expand its funding and accepted orders. Of about NIS 900 million.